Global logistics software company WiseTech Global plans to cut around 2,000 jobs as it leans into artificial intelligence as concerns over AI disruption loom over local technology stocks.
CEO Zubin Apu said the job cuts would represent more than a quarter of the group’s 7,000 employees in 40 countries, and would focus on engineers who write code.
“I’m ready to say unequivocally: The days of manually writing code as a core act of engineering are over,” Upu said on Wednesday’s earnings call.
The announcement came as WiseTech’s first-half revenue rose 76% to US$672 million (US$951 million).
This resulted in a final net profit of US$106.4 million (US$150.3 million), a decrease of 36% compared to the comparable half. This was influenced by the acquisition of supply chain software e2Open.
Operating cash flow for the six months to December rose 31% to US$192.3 million (US$272.4 million), with underlying net profit up 2% to US$112.1 million (US$158.8 million).
“We operated with discipline and delivered results in line with expectations. We are confident in our outlook,” Apu said.
WiseTech has been working on its AI transformation journey for some time.
Last year, the company built a number of AI agents into its Cargowise platform. The platform is used by over 17,000 shipping companies and logistics providers to manage shipments around the world.
The CEO acknowledged the impact of the ongoing AI transition on departing staff.
“This decision was not taken lightly, but we must remain disciplined, agile, competitive and prepared for the future,” Apu said.
WiseTech chose not to directly address former karaoke equipment company Algorhythm Holdings’ claims that its SemiCab platform could increase customer volume by up to 400% without reducing employee numbers.
The announcement sent global tech stocks plummeting and shifted the AI narrative from one of efficiency to one of disruption, making it more important for investors to avoid the losers of the technological revolution than to support the winners.
Investors welcomed WiseTech’s results and this update, with the company’s stock rebounding more than 4% to $45 in morning trading after falling more than 60% since July 2025.
wrong heading
WiseTech made headlines in the second half of the year for all the wrong reasons, including a raid on its corporate offices by corporate regulators and federal police, a shareholder strike over executive pay, and the superannuation giant dumping a $580 million stake in the company over ongoing governance concerns.
Co-founder, executive chairman and chief innovation officer Richard White, who will step down as CEO in October 2024 amid allegations of bullying and undisclosed workplace relationships, told a news conference Wednesday that he is in the right place.
“These days, my role and focus as Chief Innovation Officer has allowed me to spend the majority of my time on product design, product enhancements, and commercial models for our products, with the support of CEO Zubin and a highly motivated senior leadership team,” he said.
“This has always been a strength of mine, and I now have much greater ability and ability to drive and accelerate these outcomes.”
An internal investigation conducted by Herbert Smith Freehills and Seyfarth Shaw to investigate media allegations effectively cleared Mr. White of misappropriation of company funds.
The Australian Securities and Investments Commission is investigating allegations of possible inappropriate trading by Mr White and three of his employees.
AAP
